Have a Tax Question? Ask a Tax Expert
Do you inherit the house or your parent gift the house to you? Is the house your primary residence? for how long?
If they give it to you (during their lifetime), they will need to file a gift tax return reflecting the gift in excess of $12,000 each. They each have a $1,000,000 lifetime gift tax exemption, so there should not be any actual gift tax due - they just need to file the return.
The gift is not reportable by you in any way and there is no tax liability to you connected with this gift. Your basis (when you get ready to sell it) will be whatever their cost basis was at the time of the gift PLUS the cost of any improvements that you make after the gift.